Published: May 16, 2012

Avon's board may not have relished the idea of selling the company to a smaller rival, especially one that was prepared to sell itself to Avon only months before. But the evaporation of a deal means a lot of hard work may be ahead.

Avon's new chief executive, Sherilyn S. McCoy, above, must figure out a way to turn around the company's fortunes while operating under the cloud of a bribery investigation. MICHAEL J. de la MERCED

LOOKING AHEAD In its first earnings report as a public company, the Carlyle Group on Tuesday reported a 26 percent drop in profit.

But the investment firm emphasized what it said were brighter days ahead, as it predicted growth in its investments and plenty of opportunities for deal-making.

Carlyle said its economic net income for the quarter fell to $392 million from the period a year ago. That figure, preferred by rivals like the Blackstone Group and Kohlberg Kravis Roberts, includes unrealized gains from investments. MICHAEL J. de la MERCED

The firm's annual meeting, held at its corporate campus in Purchase, N.Y., was dominated by questions from individuals about financial regulation, the makeup of Morgan Stanley's directors and bankers' pay.

But shareholders overwhelmingly approved the executives' compensation package at the meeting. Mr. Gorman's total 2011 compensation package was $13 million, down from $15.2 million, according to a company filing. PETER EAVIS